U.S. Economy: Housing Starts, Construction UP
Consider This
by 3-Wood
Good news has just hit the wires about the construction numbers.
Expect most of the MSM to ignore this.
Housing starts surge on apartment construction: U.S. home builders broke ground on 8.2% more homes in April, led by a 36% increase in multi-family units, the Commerce Department estimated Friday.”
The lower interest rates are probably starting to have their effect.
Remember that you have time lags in economics.
It will be another few months before you should see the ripple effect of this higher construction activity impact employment and income statistics.
Also:
“Building permits increased 4.9% in April to a seasonally adjusted annual rate of 978,000.”
This is important as it signifies coming construction during the summer.
* Macro economically-speaking, the construction industry seems to be moving forward.
* At the same time the damage to the banking/finance sector has not fully run it’s course, so that will somewhat counterbalance the construction industry growth.
* In addition, oil continues to climb and I see no slowdown in demand for oil yet. Therefore, I would not be surprised to see $140 to $150 a barrel oil before the summer is over.
All other things held equal, I expect to see the market trade sideways or a little up over the summer, and then begin to climb in the fall.
by 3-wood
image: Outraged Spleen of Zion
Source: Consider This by 3-Wood
ALSO posted at:
DBKP at Blogger
[...] US Economy: Housing Starts, Construction UP By admin In addition, oil continues to climb and I see no slowdown in demand for oil yet. Therefore, I would not be surprised to see $140 to $150 a barrel oil before the summer is over. All other things held equal, I expect to see the market … DBKP – The Worldwide Leader in Weird – http://deathby1000papercuts.com Japan Posts an Economic Surprise By Mike Burnick This is leading to much faster growth for Japan?s economy in the face of a sharp slowdown in the US and Eurozone. For the benefit of those of you keeping score at home, the US economy expanded just 0.6% last quarter. … Global Stock Market BLOG – Mike Burnick – http://burnickblog.sovereignsociety.com/ This as-it-happens Alert is brought to you by . this alert. Create another alert. Manage your alerts. [...]